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Part $1$

Assume a $5-$year Treasury bond has a coupon rate of $5\mathrm{.}4\%.$

a$.$Give examples of required rates of return that would make the bond sell at a$$ discount, at a$$ premium, and at par.

b$.$If this$$ bond's par value is $$$$5$ comma $000,$ calculate the differing values for this bond given the required rates you choose in part a$.$

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Part $1$

a$.$ At what rate would the bond sell at a$$ discount?$($Select the best answer$$ below.$)$

A$.$

$4\mathrm{.}1\%$

B$.$

$5\mathrm{.}4\%$

C$.$

$7\mathrm{.}7\%$